The Dollar Dilemma
The higher Canadian dollar has created potential economic winners and losers – the Dutch disease- but also it has set the stage for an overall impact of the Canadian economy.
(a) Discuss the expected impact of a stronger dollar on growth of output, companies’ profits and employment.
(b) Discuss how a stronger dollar creates winners and losers.
(c) Identify industries (sectors) that stand to gain and those that stand to lose, e.g., Auto sector, Film, Energy, Mining, Tourism, Retail, and Financial Services, from a stronger dollar in Canada.
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